How Do Life Insurance Policies Pay Out?

Comments

2 responses to “How Do Life Insurance Policies Pay Out?”

1. 

   May 19, 2013

   David Racich

   When a death claim, a period of company due diligence occurs to verify the claim for the beneficiaries. Generally the life insurance is paid in a lump sum, but by election of the beneficiaries paid in installments. Depending upon the policy owner, the death benefit proceeds may pass tax free.
     
2. 

   May 19, 2013

   Peggy Mace

   Life insurance policies pay out the death benefit as a lump sum, or in installments, or both. If paid in installments, there is interest added to the payments for the extra time that the life insurance company had that money in its possession. The installments can be a number (such as paid out in 10 equal installments) or a time period (such as paid out within 10 years).